Canola values will continue to be supported by tight soybean supplies.
Tight oilseed stocks were confirmed in the USDA's June supply/demand report, released Tuesday morning.
Mike Jubinville, President and Lead Analyst with ProFarmer Canada, says the trade had expectations that ending stocks for corn, soybeans and wheat would be revised lower relative to last month's report.
"That came to pass for soybeans and wheat, but on corn, USDA at this point is a little reluctant to make any major revisions, so they left all the ending stocks basically the same," he explains. "So you had basically positive news for soybeans, and the market's responding in accordance to that, somewhat neutral for wheat, and a little bearish on the corn side.
He says tight oilseed supplies should help canola values remain firm.
"The idea that soybean stocks, in the U.S. and global situation at this present time, are going to be tight is an underlying sense of support for canola as well," says
Jubinville says the market will quickly move on from the USDA estimates.
"We go back to weather-related issues, worries about it being too wet on the eastern side of the prairies, but the focus will certainly be the U.S. Midwest where dryness concerns still prevail," he says. "And then the macro-economic issues with the debt-related problems in Europe that are affecting the global economic climate."
The USDA's next major report - its acreage estimates - will be released on June 29th. Statistics Canada will release its Canadian acreage estimates on June 2